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China Chemical Firms Hit With First-Ever US Fentanyl Charges

The companies named in the separate indictments are accused of selling precursor chemicals to the Sinaloa Cartel in Mexico, which has flooded the US with the drug

Plastic bags of Fentanyl are displayed on a table at the US Customs and Border Protection area at the International Mail Facility at O'Hare International Airport in Chicago, Illinois, US. Photo: Reuters


The United States Justice Department has for the first time filed criminal charges against four Chinese chemical manufacturing companies and eight individuals in connection with the fentanyl-fuelled opioid crisis in the US.

It’s alleged the accused illegally trafficked the chemicals used to make fentanyl – a highly addictive painkiller – which has swept across US cities with tens of thousands addicted.

The indictments mark the first time the US has sought to prosecute any of the Chinese companies responsible for manufacturing precursor chemicals used to make the painkiller.


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China’s foreign ministry on Saturday urged the US to stop using what it said were fentanyl-related pretexts to sanction and prosecute Chinese companies and citizens, and demanded the immediate release of those who were “illegally arrested”.

“China urges the US side to stop dumping blame and to stop smear attacks on China,” the ministry said in a statement.

Earlier, the Chinese embassy spokesperson Liu Pengyu said such “long-arm jurisdiction” would create more obstacles for China-US counter-narcotics cooperation.

The move came after Antony Blinken made the first visit to China by a US Secretary of State in five years and said he had made clear that Washington needs much greater Chinese cooperation to stem the flow of fentanyl.

During his visit, the two sides agreed to stabilise their intense rivalry so that it did not veer into conflict, but failed to produce any breakthrough and the mood quickly soured again after US President Joe Biden on Tuesday referred to Chinese leader Xi Jinping as a dictator.

The companies at the heart of the three separate indictments are accused of selling precursor chemicals to the Sinaloa Cartel in Mexico, which has flooded the US with the drug.


‘False Customs Forms and Mislabeled Packages’

Federal prosecutors in Manhattan announced the unsealing of an indictment against the China-based Hubei Amarvel Biotech, along with its executives Qingzhou Wang, 35, Yiyi Chen, 31, and Fnu Lnu, also known as Er Yang, with fentanyl trafficking, precursor chemical importation, and money laundering offenses.

In the Eastern District of New York, prosecutors announced the unsealing of two more indictments against three other Chinese companies and individuals accused of conspiring to manufacture and distribute fentanyl.

Prosecutors said the companies – including one called Hebei Sinaloa Trading Co – advertised precursor chemicals on social media in Mexico and the US, and used false customs forms and mislabeled packages to ship the chemicals by boat and air.

Two months earlier, the Justice Department charged leaders of the Sinaloa cartel with running a fentanyl trafficking operation fueled by Chinese chemical companies, including three sons of Joaquin “El Chapo” Guzman, the one-time cartel leader now imprisoned in the US.

Deputy Attorney General Lisa Monaco said the cases “break new ground by attacking the fentanyl supply chain at its origin.”

“Fentanyl poses a singular threat, not only because the smallest doses can be lethal, but because fentanyl does not occur in nature. It is entirely man-made.”


DEA Undercover Op

Also on Friday, Blinken announced he would convene a virtual ministerial meeting on July 7 of dozens of countries and international organisations, to launch a Global Coalition to Address Synthetic Drug Threats.

The aim would be to unite countries “in a concerted effort to prevent the illicit manufacture and trafficking of synthetic drugs, identify emerging drug trends, and respond effectively to their public health impacts,” he said in a statement.

The Justice Department said undercover Drug Enforcement Administration (DEA) sources posing as fentanyl manufacturers met with Wang and Chen earlier this year and agreed to buy 210 kg of fentanyl precursors in exchange for payment in cryptocurrency. The DEA retrieved the chemicals from a Los Angeles warehouse in May.

Wang and Chen were arrested by DEA agents on June 8 and ordered detained in Honolulu, Hawaii until they can be transported to New York to appear before the judge handling the case. Yang remains at large.


  • Reuters with additional editing by Sean O’Meara


Read more:

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Beijing Slams US Sanctions On Chinese Drug-Making Firms



Sean O'Meara

Sean O'Meara is an Editor at Asia Financial. He has been a newspaper man for more than 30 years, working at local, regional and national titles in the UK as a writer, sub-editor, page designer and print editor. A football, cricket and rugby fan, he has a particular interest in sports finance.


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